Rousseff and Merkel exchange ideas on ‘monetary tsunami’ and ‘protectionism’

Mercopress, 03/06/2012

President Dilma Rousseff and German Chancellor Angela Merkel on March 5, 2012. (AFP)

German Chancellor Angela Merkel replied on Monday to Brazilian president Dilma Rousseff claim that Europe is involved in a “monetary tsunami” arguing that developed countries are very concerned with Brazil’s protectionist measures. Merkel and Rousseff met at Hannover where the Brazilian president was invited to open a high technology event.

Rousseff had slammed expansionary monetary conditions in Europe saying her government may take more measures to stem currency gains being fueled by “protectionist” policies in rich nations, but dismissed it would impose capital inflow controls.

“We will discuss the crisis and the concerns each of us has. The president mentions a “liquidity tsunami” that is worrying Brazil, on our side we are concerned with the protectionist measures imposed by Brazil”, said Merkel in reference to additional taxes on the import of cars.